23rd Parliamentary Intelligence-Security Forum – Adversarial Foreign Investments
Mr. Joseph Humire, Executive Director of the Center for a Secure Free Society, commenced his address by expressing gratitude to the Parliamentary Intelligence Security Forum and acknowledging his longstanding participation since 2016. He underscored the significance of prioritizing Latin America, a region frequently overlooked in Washington, particularly concerning foreign investment and trade.
Mr. Humire delineated Latin America as a diverse continent comprising 33 countries, many of which are relatively new to democracy and confront structural economic and rule-of-law challenges. The COVID-19 pandemic further exacerbated vulnerabilities, rendering the region susceptible to adversarial foreign investment.
He elucidated China’s expanding influence, noting that a 2004 commitment by Chinese President Hu Jintao to invest $100 billion by 2010 catalyzed rapid expansion. By 2020, trade and investment reached $450 billion, positioning China as the leading trade partner for half of Latin America. He emphasized that U.S. neglect contributed to this influence, citing China’s minority stake in the Inter-American Development Bank and the utilization of funds to provide soft loans to nations such as Bolivia, Nicaragua, and Haiti.
Mr. Humire highlighted that China’s investments often exhibit dual-use characteristics, integrating commercial and military applications. Notable instances include Chancay Port in Peru, majority-owned by COSCO Shipping (associated with the People’s Liberation Army), and the Espacio Lejano deep-space station in Argentina, also controlled by the People’s Liberation Army. These projects exemplify China’s strategy of “military-civil fusion,” employing economic and commercial instruments to augment military capabilities.
Mr. Humire cautioned that nations accepting Chinese investment risk geopolitical entanglement due to debt obligations and cross-default clauses, potentially compelling them to align with China’s strategic objectives. He concluded that Latin America and other nations must approach Chinese trade and investment with caution to avoid unintended geopolitical commitments.
